LONDON, May 14 (Reuters) - Britain launched an antitrust investigation into Microsoft's dominance in business software that could lead to targeted action if the U.S. company is found to have "strategic market status" in the sector.
The Competition and Markets Authority said the investigation - its fourth under new powers granted last year - would examine whether the bundling of Windows, Word, Excel, Teams, Copilot and other products was weakening competition.
It would also look at how AI competitors were able to integrate with Microsoft's business software, it said.
An SMS designation would also allow the CMA to intervene in the cloud market, where it has previously found Microsoft's use of software licensing could be reducing competition in cloud services.
CMA Chief Executive Sarah Cardell said business software was a cornerstone of the British economy, with hundreds of thousands of customers relying on Microsoft's systems.
"Our aim is to understand how these markets are developing, Microsoft's position within them and to consider what, if any, targeted action may be needed to ensure UK organisations can benefit from choice, innovation and competitive prices," she said in a statement on Thursday.
A Microsoft spokesperson said: "We are committed to working quickly and constructively with the CMA to facilitate its review of the business software market."
The investigation will conclude by February 2027, the CMA said.
(Reporting by Muvija M and Paul Sandle; editing by William James and Sarah Young)
